Cars24 draws the shutters on its supply focused vertical in over 80 cities
- ByTejika Bajaj | December 13, 2021
The used car marketplace Cars24 recently pulled the plug from its supply focused vertical in about 82 smaller cities. The startup aims to now focus on the top 100 cities in its portfolio and discontinue its supply side services.
This announcement comes at a time when the used-car marketplace is brimming with funding from investors across the country. Various startups like Spinny, CarDekho and Droom became unicorns this year following massive capital infusion from varied investors. However, the segment is also experiencing a massive shift in its business module to make its inventory light.
According to an internal note sent by Cars24’s co-founders to its employees, the company has decided to focus on the top 100 cities countrywide. “As a part of our strategic review, we have decided to discontinue our ‘supply side’ business activities outside of the top 100 cities in India,” said the note. Through its supply-side business Cars24 primarily buys used cars from consumers on behalf of dealers and builds inventory for its retail business.
Importantly, the company emphasised that this is not a cost-cutting exercise and demand-focused or sell-side business will continue to operate in these cities. Impacted employees will be offered an opportunity to switch to other cities while those who chose to move will get three months’ salary and six months of medical insurance coverage.
Car24 is an online platform which allows people to sell their used cars to anyone interested in the same. Apart from cars, it also deals in used bikes and has a significant overseas presence. Cars24’s Singapore based holding entity controls six subsidiaries of the company across India, Australia, UAE and Thailand.
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